CVM Instruction No. 417 of March 31, 2005

CVM INSTRUCTION NO. 417, OF MARCH 31, 2005.

Provides for the registration of commercial banks and multiple banks without an investment portfolio with the CVM.

THE PRESIDENT OF THE SECURITIES AND EXCHANGE COMMISSION - CVM makes public that the Collegiate Body, in a meeting held on March 29, 2005, in accordance with the provisions of Articles 4, item I, and 8, item I, of Law No. 6,385, of December 7, 1976, and Article 2 of Resolution No. 3,261, of January 28, 2005, of the National Monetary Council, HAS RESOLVED to issue the following Instruction:

Article 1. For the exercise of the activities referred to in Article 2 of CMN Resolution No. 3,261, of January 28, 2005, the institutions mentioned therein must request their registration with the Securities and Exchange Commission - CVM, by May 31, 2005.

§1. The request must contain the following registration information:
I – name, address, and CNPJ of the bank;
II – indication of the director responsible for the activity of distributing shares of open-end investment funds, or for collecting scattered sell orders for stocks; III – indication of the director responsible for compliance with the obligations established in CVM Instruction No. 301, of April 16, 1999, and CVM Instruction No. 387, of April 28, 2003.

§2. The registration information must be updated within a period of up to 5 (five) business days after any alteration has occurred.

Article 2. In operations for the distribution of shares of open-end investment funds, or for the collection of scattered sell orders for stocks, the provisions of CVM Instruction No. 301, of April 16, 1999, must be observed.

Sole Paragraph. In operations for the collection of scattered sell orders for stocks, the provisions of CVM Instruction No. 387, of April 28, 2003, shall also be observed, insofar as applicable.

Article 3. The exercise of the activity of distributing shares of open-end investment funds, or of collecting scattered sell orders for stocks, by commercial banks or multiple banks without an investment portfolio that are not registered in accordance with the terms of this Instruction, is considered a serious offense, for the purposes of Article 11, § 3, of Law No. 6,385, of December 7, 1976.

Article 4. The institution registered under the terms of this Instruction that fails to keep its registration updated is subject to a daily penalty fine of R$ 100.00 (one hundred reais), incurred from the day following the end of the period established for compliance with the obligation, without prejudice to the provisions of Article 11 of Law No. 6,385/76.

Article 5. This Instruction enters into force on the date of its publication in the Official Gazette of the Union.

Signed original by
MARCELO FERNANDEZ TRINDADE
President